Important Tax Changes for BC and PEI

Important Tax Changes for BC and PEI

close up of female accountant or banker making calculations. savings, finances and economy concept

We recently received this email from Intuit, detailing some upcoming important tax changes for changes to sales tax in British Columbia and Prince Edward Island, which will take effect on April 1, 2013. The email also provides some information on how to update your tax codes in QuickBooks in order to accommodate for these changes.

The tax changes represent an interesting role reversal: the 12% Harmonized Sales Tax in BC will be replaced by the 5% Goods and Services Tax and 7% Provincial Sales Tax, while the Provincial Sales Tax in PEI will be replaced by a Harmonized Sales Tax rate of 14%; 5% of this will represent the Goods and Services Tax, and 9% will represent the Provincial Sales Tax.

Below is the email in its entirety, with some helpful links for residents of both provinces.

On April 1, 2013, the provinces of British Columbia (BC) and Prince Edward Island (PEI) will be changing the way their sales taxes are administered.

In British Columbia, the 12% Harmonized Sales Tax (HST) will be replaced by the 5% Goods & Services Tax (GST) and 7% Provincial Sales Tax (PST).¹

In Prince Edward Island, the PST will be replaced by a HST rate of 14%, of which 5% will represent the GST and 9% the PST.¹

You will need to make a few changes to your existing tax codes to accommodate for these changes, but we’re here to help you through it.

Review our Support FAQs and videos on how to make the transition within QuickBooks 2013: (edit: several offsite resources are no longer available)

1. Instructions for BC updates:

Pro/Premier/Enterprise

EasyStart

Or watch the video

 

2. Instructions for PEI updates:

Pro/Premier/Enterprise

EasyStart

Or watch the video

Are you a resident of BC or PEI? What are your thoughts on these tax changes?

Residents of other provinces, do you think changes similar to either of these should come into effect for sales taxes in your province?

Share your thoughts in the comments below!

Copyright: morganka / 123RF Stock Photo

Juliet Aurora

About The Author

Juliet Aurora is the CEO of AIS Solutions and Co-Founder of Kninja Knetwork. Through both of these businesses she fulfills her mission to Educate and Empower those around her. In 2017, her firm was named Intuit's Global Firm of the Future, the first time the title has ever been awarded to any firm outside of the US. She has also has been named as one of the Top 50 Women in Accounting, one of the Top 50 Cloud Accountants and one of the Top 10 Canadian Influencers in the Bookkeeping Industry. Her passion for education is channeled through the Intuit Trainer Writer Network, hosting Kninja Knowledge Webinars and most recently, developing a Cloud Accounting Course for the next generation of accounting professionals.

Leave Comment